This article was originally published in The Option Strategist Newsletter Volume 7, No. 22 on November 25, 1998.
Using options as a contrary indicator to aid in predicting the forthcoming path of the underlying instrument is one of our favorite technical tools. When option speculators agree en masse about something, they are generally wrong. So, as astute traders we should do the opposite (the exception, of course, is in stock options where someone might be acting on inside information, in which case we would want to go along with them).
